On April 4, the European Securities and Markets Authority (ESMA) published a risk assessment (Risk Assessment) that confirmed it sees no need to temporarily exclude exchange-traded derivatives (ETDs) from open and non-discriminatory access requirements applicable to central counterparties (CCPs) and trading venues, introduced by Articles 35 and 36 of the Markets in Financial Instruments Regulation (MiFIR). The Risk Assessment is required to be published by July 3, and permits the European Commission (EC), subject to ESMA’s conclusions, to adopt a delegated act to provide for an exclusion of up to 30 months for ETDs from the open access provisions.
In conducting the Risk Assessment, ESMA was required to assess whether the open access provisions applicable to CCPs and trading venues regarding ETD’s would result in any risks to the overall stability and orderly functioning of financial markets in the European Union. ESMA’s analysis did not identify any risk relating to open access for ETDs that could not, in ESMA’s view, be addressed within the existing open access framework. ESMA intends to update its review of the effects of open access on ETDs in connection with the EC’s report on the application of Articles 35 and 36 of MiFIR, which is due by July 3, 2019.
A copy of ESMA’s Risk Assessment can be found here.
A copy of ESMA’s accompanying press release can be found here.